capital needs to be allocated where the most outcome value is produced in order to create growth. when capital is allocated in unproductive sectors, the only way to keep up with the “fake growth” is by creating money. This eventually creates inflation and affects everyone.

basic economics but important to understand in the current economic situation. This applies to governments mostly but also to companies. When companies spend money in unproductive sectors, this creates a bubble that will be burst when outside economics factor affect demand. Which is the main reason for layoffs.